The Swiss-Irish bakery giant Aryzta has released its third-quarter financial results, ending April 30, where it revealed its revenue fell by 16.8% to €811.4 million.
The group, which owns Cuisine de France, attributed this fall to disposals and currency effects, which offset growth by 8.9% and 6.7% respectively.
Group organic revenue declined by 1.2% in the period, but remained relatively stable year-on-year, despite the challenging trading environment of weaker market conditions and difficulties recovering inflationary costs.
Aryzta Chief Executive Officer, Kevin Toland, commented, “Aryzta has identified and is addressing the challenges facing the historical business model and the industry generally and will stay focused on its core, the frozen B2B bakery market.
“As part of the ongoing process, the Group has sold selected loss-making assets, rationalised headcount, and under the new management put in place a series of efficiency and cost reduction activities to accelerate performance improvement. As part of this process, we are also today announcing a three year €200 million restructuring and cost reduction plan aimed at restoring financial flexibility and aligning our asset and cost base with current and expected business conditions.”
The bread maker's board approved the three-year restructuring plan which will commence immediately and is aimed at restoring financial flexibility and improving the company’s asset and cost base to its current revenue run rate.
Aryzta recently reported that a revenue drop of 6.3% to €1.787 billion with an organic decline of 2.2% in the six months to 31 January 2018.
© 2018 Checkout – your source for the latest Irish retail news. Article by Aidan O’Sullivan. Click subscribe to sign up for the Checkout print edition.